Tax Planning in Calgary
Building Your Tax Planning Strategy to Minimize Your Taxes
Everyone has to pay taxes, but minimizing taxes can have a significant impact on your wealth over the long term. With some planning and help from our tax strategists, Mirador clients can potentially reduce the amount of taxes they owe.
This active approach to your tax planning in Calgary is just one of the ways we take a holistic approach to your investment and wealth management. We know that tax needs vary by client and that your tax advisor might not have a full financial snapshot of your investments to enable them to implement the most effective tax plan.
We work closely with your tax advisor to identify, recommend, and implement strategies that will minimize your family’s taxes. This includes identifying opportunities for income splitting, analyzing the optimal timing for each income stream, family trusts, corporate holding companies and other strategies.
Triopay Tax Efficiency
Not only do we liaise with your tax advisor, Mirador’s Triopay Canadian and U.S. programs are tax efficient in and of themselves. Since Triopay’s primary focus is on dividends, when the Canadian Triopay program is held in non-registered accounts in Canada you will be able to utilize the dividend tax credit resulting in a much lower marginal tax rate for dividends than for interest. To make the same after-tax income as the recent Triopay distribution you would need to buy a GIC or bond yielding almost 9%.
For U.S. citizens participating in the Triopay U.S. program, substantially all the dividends will meet the criteria to be classified as Qualified Dividends and thus taxed at a much lower rate than interest. It’s not just what you earn, but what you keep in your pocket after taxes that counts. For Canadians participating in the Triopay US program to create US cash inflow to cover US expenses, the dividends are not as tax efficient as their Canadian counterparts. However, the benefit of avoiding exposure to foreign currency fluctuations often offsets the less efficient taxation.
The Importance of Tax Planning in Calgary
Tax planning is a fundamental part of financial management and there are several key reasons why it is important to engage in proactive tax planning. Get the tax advice you need from Mirador Corporation.
Maximizing Savings and Creating Financial Security
Tax planning plays a pivotal role in maximizing your savings. By identifying and leveraging available deductions, credits, and exemptions you can significantly reduce your taxes owing. This proactive approach allows you to retain more of your income to meet your life goals. It also enhances financial stability and security as it frees up resources to build emergency funds, invest in insurance and create a safety net for unforeseen circumstances.
Wealth Accumulation
Tax planning is a key element in wealth accumulation strategies. By optimizing investment decisions and minimizing tax implications, you can enhance the growth of your assets over time, which facilitates the accumulation of wealth and leads to increased financial independence, retirement readiness and the ability to achieve long-term financial and lifestyle objectives.
Holistic Financial Management
Tax planning is an integral part of holistic financial management. It involves considering the broader financial landscape, including budgeting, investment planning and debt management within the context of tax implications. It also involves considering the financial picture of your business, your spouse and other family members to identify opportunities for income splitting. By integrating tax strategies into comprehensive financial planning, you can achieve a well-rounded and efficient approach to managing your financial affairs.
Strategic Decision-Making
Tax planning guides strategic decision making by providing a framework for evaluating the financial impact of various choices. Whether it’s choosing investment vehicles or timing significant financial transactions, understanding the tax implications allows you to make informed and strategic decisions. This proactive approach aligns financial goals with tax efficiency, promoting a more prosperous and sustainable financial future.
When our investment clients come to Mirador for help with their Calgary tax planning strategies, we work closely with your tax advisor to ensure that your financial affairs are structured in the most tax effective manner possible.